The global financial markets faced a turbulent start to the week following U.S. President Trump's recent imposition of tariffs on Canada, Mexico, and China. Announced over the weekend, these tariffs have sparked growing fears of a global trade war, resulting in significant market volatility. In the Asian trading session on Monday, the AUD/USD pair continued its sell-off, dropping below the 0.6100 mark.
Cryptocurrencies were not spared from the market turmoil. Bitcoin, Ethereum, and Ripple closed below their key support levels. At the time of writing on Monday, Bitcoin had decreased by 4.3%, while Ethereum and Ripple suffered sharper declines of 13% and 12.6%, respectively. This widespread sell-off underscores the heightened risk aversion among investors triggered by the tariff announcements.
The EUR/USD pair also experienced downward pressure, continuing a declining trend that began on January 27. Trading around 1.0230 during the Asian session on Monday, the pair remains confined within a descending channel pattern. A closer examination of the daily chart suggests that this bearish momentum is likely to persist in the near term.
In addition to currency and cryptocurrency markets, gold prices have experienced a correction. After reaching record highs of $2,817 last Friday, gold prices retreated, falling below $2,800 early Monday. Meanwhile, the Australian dollar awaits further data from Australian Retail Sales and China's PMI to assess its trajectory amid the current market conditions.
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